The Hindu Business Line : Himalaya Drug plans new venture in Egypt

THE Bangalore-based Himalaya Drug Company is planning to launch a new initiative in Egypt to manufacture and market herbal and healthcare products. The Egyptian partner will initially be required to provide a couple of production lines, which will be manned by Himalaya's personnel from India. A similar project with Himalaya's know-how and expertise has already been set up in Syria by a local company.

Mr Ravi Prasad, President and CEO of the company, told Business Line here today that the project would take off during the next fiscal. He was in the city to launch a new health food product from the company's stable in the eastern region.

Three Egyptian companies are in the race for Himalaya's proposed new venture. Himalaya will also supply raw materials for manufacturing the range of products. The company, however, is not planning any financial investment, and will only be supplying the know-how and expertise.

According to him, all the three potential Egyptian partners already have their own manufacturing facilities.

"Eventually, we will tie up with one from among the three on the basis of capability and manufacturing practices. The alliance will primarily be for transfer of technology from our side.''

It may be mentioned that the company procures herbs through contract farming and also trades in pure herbs.

The Rs 250-crore closely held healthcare company is also looking for partners in Europe for such on-shore projects. Himalaya has chosen technology transfer-based overseas manufacturing and marketing as the future growth vehicle for increased overseas presence through exports.

According to Mr Prasad, researched and standardised herbal therapeutic drugs and healthcare products of Himalaya have been accepted in the European and North American markets. According to him, Himalaya products have been endorsed by over 2 lakh doctors around the globe and the company's products are sold in 55 countries.

``In the first eight months of the current financial year, export earnings of the company have grown by almost 100 per cent. During the last fiscal, exports contributed to around 20 per cent of our turnover,'' Mr Prasad stated.

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